Sunday, July 18, 2010

Timing the Market, Part II

As a follow-up to Timing the Market, I wanted to share the following three Trend Following Trading Models.  In the prior article I highlighted the S&P 500 and today, the 240_Minute Trend Models of the Nasdaq, Value Line and Russell indexes.


Nasdaq_240


ValueLine_240


Russell_240


Note how effective these models have been in navigating through the past few months of market movement.  Every major swing is captured, albeit not from the absolute turning points but soon enough thereafter to make for profitable trading.  Note also that there are a few whipsaws, which apparently is a small price to pay for capturing the major swings.  

The emergence of the 240_Minute Trading Model as an almost ideal time period for capturing turning points for major market swings may be the most significant development since the inception of the Trend Following Trading Model. 

A


Past performance does not guarantee future results.